SBP advises banks to provide dollars to exchange companies

State Bank has advised banks to provide dollars to exchange companies to stem the value of domestic currency which registered sharp erosion in last two trading session.

Dollar at interbank was unmoved but saw sharp depreciation in the open market falling by more than 2 rupees to 113.50 rupees to a dollar. However, following the exchange companies’ word with the State Bank of Pakistan officials to take immediate step to save currency from the free fall.

Banks according to the President of Exchange Companies Association of Pakistan have started providing dollars to foreign exchange dealers which help arrest the trend.

Dollar in open market on Tuesday dipped by Re.1 to Rs 112.50, the green backs to dip further in the current week and might reach below Rs 112 level. The continuous support from the banks supplying dollars would help domestic currency to strengthen.

“This is the positive omen that the dollar at the interbank has been unmoved and moving in a narrow band”, a dealer said.

Positive statement arriving from the Minister of State for Finance Rana Afzal that the country won’t require any fresh package from the IMF and government has the will and potential to pay clear foreign debts.